The ATO has released a draft ruling ( TD 2026/D1 ) that creates a real and immediate tax risk for many wills and estate plans that include a “right to occupy” or “right to reside” in the family home.   In short, the ATO’s draft view is that many of these rights will not qualify for the main residence capital gains tax ( CGT ) exemption when the property is eventually sold.   This can result in unexpected and significant CGT for estates and beneficiaries.   Why this matters